The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-12-03
THE COMPRESS FIRE.
Tncuronoa Comnon;oo Of Wor
A Dispute over the Liability of Fire
and Marine Companies.
A Mystery That Makes the Indem-
nifty Feature Interesting.
Underwriters Seek an Adjustment,
Forcing 1t Upon the Marine.
That the Names of the Companies Ip-
volved HaveNot Been Made Pub.
lie Only Adds to the Anx-
iety Felt.

The following is taken from the st. Louis
Globe-Democrat of December l:
Among insurance men there is no topic so
generally discussed now as the losses that
have accrued from the great cotton fro at
Memphis. Business men and manufacturers
who carry large lines Of insurance are equal
~ interested. The underwriters are yet at
sea with regard to their liability, and the
mercantile community is anxious to know
what companies will be called upon 10 make
up the losses. 1t Is known that some of the
companies carried large risks upon the prop
erty destroyed, and the fear that some Of
them may be seriously crippled is what is
agitating the insurance world. The liabilities
have not been determined as yet, and the
problem is one that bids fair to take several
months to solve. There is mystery about
the affair that makes the indemnity feature
OF IL very interesting. Especially is this the
case since detailed account OF the losses
and the names Of the various companies in
volyed have not been given TO the public.
The local insurance men claim that they do
not know the names of all the companies
that carried the risks, but Mr.. John Slaugh-
pected list OF the companies would be
Forthcoming in few days. II has been stated
that II, 600 bales Of cotton, Of the value of
81 bale were consumed by the fire, aggrc-
eating q loss of S65S,0OO, besides the com
press warehouses that were destroyed at the
same time.
MARINE POLICIES.
IL goes without saying that this vast
amount OF cotton was owned by hundreds OF
different parties, planters and brokers,
throughout the cotton-growing belt tributary
TO the city OF Memphis. II is moro than
probable that every bale % the cotton which
they shipped, and which was lost by the fire.
was covered by policies Of marine Insurance
In the interest OF the consi,por. This feature
OF insurance is pulling The underwriters.
The risks having been placed at numerous
shipping points by their agents, sufficient
time has not elapsed for them TO ascertain
how many different companies are involved.
Another feature that complexities the adjust
mcnt OF the loss, and one that requires time
Ia determine, i to what extent, III any these
marine risks may he liable. IL is probable
tina: but very small proportion Of the poll
c;cs are written alike, rs nearly all the com.
panies vary 20 q greater or less degree In their
mode of doing busidcss. Some marine poll
cics only guarantee against loss Of goods
while In transit the company's liability
ceasing the minute the cargo Is unloadCd.
Other policies provide against loss until mer.
chandisc Is placed IN the warehouse, and IL
is said that some marine insurance Is written
10 a. to protect the owner until his cotton
has been sold from the warehouse and re.
moved.
LEGAL PRECEDENT.
Tho liability Of company under policy
OF this latter description was established,
Mr.. Henry Hitchcock says more than ten
years ago by the United States supreme
court IN the case Of Adolphus Meier vs. the
-. Louis Firc Insurance company. Mr.
Meier shipped large quantity OF cotton In
cars 60 Jersey City via the Erie line The
cotton WIS destined for ~ European market
and Mr. Meier procured n policy from the
local company insuling him against loss UNI
III the cotton was placed aboard ship. For
some reason the cotton was delayed in the
fhcds nc jersey City, aud while there was
destroyed. The company sought to avoid
payment by attempting 10 establish the fact
that the shipper had not used due diligence
IN having the cotton removed aud loaded on
chip IN reasonable tine. Tho court, how
ever rejected this view Of he case, and
rendered Judgment for 10000 against the
defendant. Tho decision IN this case Is,
among othor, cited 10 show that n company
Il liable for the loss Of, property It insurcs IN
one state, although IL may be destroyed by
fire In another.
These issues will arise 10 greater or less
extent IN adjusting the losses at Memphis,
and will play o very important part IN de-
Gliding 10 what extent the lire com anics that
carried risks on the properly are liable. The
IRE companies carried heavy risks ON the
cotton, and they viii, as q matter 81 sclf-in.
tcrcst, do all IN thcifpoNcf 20 saddle TIE loss
on the marine companies. Hence, the al.
iusiInent promises 10 resolve itself into a
struggle between these two respective
branches Of tic insurance business. The
marine companies, for sclfprotccton, will
endcavor 10 show that their liability ceased
when the cotton was placed IN the ware.
house. or prior 10 that time. Insurance men
say that In proportion 10 the extent the
marine companies are able 70 relieve them
selves Of responsibility. IN this way the lia.
bilitics Of the Tire companies Will be in
creased, and vice .crsa.
AZ Avenue or EscArE.
Mr.. Zen Kimball, IN discussing this topic
said the fire companies were consoling them
selves with thc hope that they would he able
90 relieve themselves OF avery larEc liability
In this way. IN no event would Nc courts
require the payment 81 both marine and fire
policies on the same risk.
There promises b. be good deal Of trouble
and Il Is not likely that the losses will be
Paid Tor long time yet II Is more than
probable that every person Interested will
haze 10 make affidavit 10 the names Of the
companies he was insured by and the
amount OF risk IN each particular case, before
the ndjustcrs will have any data 30 work on.
There will be six ndjustcrs In the case. The
names have not been announced yet, but Il
IL understood that the larger interests are
trying 10 agree upon the men, who will be
selected In a few days.
When II comes - settling the loss on the
compress warehouses and machinery there
will not be much difficulty, as there will be
no conflict Of interest. Mr. A. A. Carpenter
who represents two local companies, was IN
Memphis few DAYS ago For the Manu-.
facturcrs' mutual, Of 81 Louis, he had risk
OF g. 900 on the buildings and 81 600 on
presses aud for the American mutual, OF
This city, 500 on building and 81 900 ON
presses. How much other insurance was
placed on these two risks lac bad not been
able 70 ascertain. but, Notwithstanding the
fact that the presses were not so badly in
iurcd a. he feared, be Is oi the opinion that
lis companies will have 10 pay IN full lie
/, not very hopeful OF getting any rntcage,
however, and now wishes that be had taken
risks or tie cotton and LEFT the buildings
and machinery alone.
From the above article, u Is quite
likely that the sufferers by the recent
cotton fires In Ibis city will have no